SpiceJet, the beleaguered airline operator, witnessed a 4 percent surge in its shares following the announcement of the resolution of a Rs 413-crore dispute.
The airline successfully resolved a dispute with Echelon Ireland Madison One, resulting in significant savings of $48 million or Rs 398 crore for SpiceJet. As part of the settlement, SpiceJet will acquire two airframes, thereby enhancing its fleet and operational capabilities.
This settlement marks the third major resolution for the carrier, following recent fundraising efforts. These successful settlements have collectively resulted in total savings of Rs 685 crore for the airline.
At 11:10 am, SpiceJet shares were trading at Rs 64.55, up by 4.25 percent on the BSE compared to the previous session’s closing price. Ajay Singh, chairman and managing director of SpiceJet, expressed satisfaction with the resolution, emphasizing its significance in bolstering the airline’s financial prudence and fleet strength.
Earlier on February 28, SpiceJet had announced the mutually beneficial settlement of a $29.9-million or Rs 250-crore dispute with Celestial Aviation, resulting in savings of Rs 235 crore. Additionally, on March 5, the airline reached a settlement with aircraft leasing firm Cross Ocean Partners for a dispute of about $11.2 million or Rs 93 crore. This arrangement includes the transfer of an airframe and an engine at no additional cost, further enhancing SpiceJet’s operational capabilities.
Over the past six months, SpiceJet’s shares have witnessed a remarkable surge of around 60 percent, outperforming the benchmark Nifty 50, which gained around 14 percent during the same period.
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